KUALA LUMPUR: Plans to sign a peace deal next year by the Philippines’ government and an Islamic separatist group may be thwarted after a dispute on Saturday over a draft agreement on the boundaries for a Muslim homeland, officials said.

The Moro Islamic Liberation Front rejected a proposed draft over the extent of territory that would fall under Muslim control in the impoverished Mindanao region at the start of talks in Malaysia, causing the meeting to be abruptly called off, officials said.

“There have been differences in the proposed text on concepts of territory and resources, including elements of governance,” chief Philippine government negotiator Rodolfo Garcia said.

“Realistically given this present situation, it might be difficult to reach the (January) target. We are going to review the proposal that we have brought here and hope to be able to resolve the differences,” he said.

Both sides hoped to get an agreement done in January on the “ancestral domain” agenda after years of wrangling.

Once the ancestral domain agreement is forged, both sides are to discuss other issues — such as the type of government for the territory — in order to formulate a comprehensive peace pact, possibly by August 2008, officials have said.

The ancestral domain agenda had stalled formal peace negotiations since last year. It was the biggest hurdle in efforts to forge a permanent peace pact, which would replace a fragile 2003 cease-fire between authorities and the MILF in Mindanao, home to minority Muslims in the predominantly Roman Catholic Philippines.

The Philippine and US governments hope an agreement with the MILF could transform its vast rural strongholds in Mindanao into economic growth hubs instead of conflict zones that could harbor Al Qaeda-linked militants.—AP